Paychex Inc (PAYX)
Current ratio
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,251,500 | 9,886,400 | 8,923,700 | 9,088,500 | 7,528,100 | 7,595,200 | 6,198,200 | 6,085,400 | 6,581,600 | 7,237,300 | 6,632,400 | 6,317,300 | 6,169,500 | 6,622,200 | 5,592,400 | 5,340,200 | 5,464,600 | 6,389,400 | 5,627,900 | 5,555,900 |
| Total current liabilities | US$ in thousands | 5,309,100 | 8,000,800 | 7,254,400 | 7,343,500 | 5,805,400 | 5,958,100 | 4,753,900 | 4,702,200 | 5,269,200 | 5,687,900 | 5,221,900 | 4,957,900 | 4,938,200 | 5,356,000 | 4,380,000 | 4,263,100 | 4,426,900 | 5,389,700 | 4,823,900 | 4,823,500 |
| Current ratio | 1.37 | 1.24 | 1.23 | 1.24 | 1.30 | 1.27 | 1.30 | 1.29 | 1.25 | 1.27 | 1.27 | 1.27 | 1.25 | 1.24 | 1.28 | 1.25 | 1.23 | 1.19 | 1.17 | 1.15 |
May 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,251,500K ÷ $5,309,100K
= 1.37
The current ratio for Paychex Inc has exhibited some fluctuation over the past quarters. As of May 31, 2024, the current ratio stood at 1.37, indicating that the company had $1.37 in current assets for every $1 in current liabilities. This ratio has been generally stable above 1 in recent quarters, suggesting the company has been able to meet its short-term obligations effectively.
The current ratio dipped slightly in the Feb 29, 2024 quarter to 1.24 but recovered in the subsequent quarters hovering around the range of 1.23 to 1.30. This indicates that the company has generally maintained a healthy balance between its current assets and liabilities during this period.
The trend in the current ratio suggests that Paychex Inc has managed its short-term liquidity well, with the ability to cover its short-term obligations comfortably. However, it is important for investors and stakeholders to continue monitoring this ratio alongside other financial metrics to gain a comprehensive understanding of the company's overall financial health and liquidity position.